The academy's announcement is due at 1 pm (1100 GMT).
This year the Swedish Academy registered about 220 proposals thatwere trimmed to a short list of five before the summer recess.
The academy does not publish the short list and keeps its decisions and motivations under seal for 50 years, making second-guessing difficult.
Last year, it awarded Belarusian writer Svetlana Alexievich, citing her writings on key events affecting Belarus during and after the Soviet era, including the Chernobyl nuclear disaster, the Soviet-Afghan War and the fall of the Soviet Union.
In the run-up to the announcement, writers tipped for the 2016 Nobel Prize in Literature include Ngugi wa Thiong'o of Kenya, Syrian-born poet Adonis (Ali Ahmad Said Asbar), Haruki Murakami of Japan as well as American authors Don DeLillo, Joyce Carol Oates and Philip Roth.
Nobel Prizes this year have already been awarded in the fields of medicine, physics, chemistry, peace and economics.
With the exception of economics, the prizes were endowed by Swedish industrialist Alfred Nobel (1833-96), the inventor of dynamite.
This year, the prizes are each worth 8 million kronor (930,000 dollars). The awards are presented every year on December 10, the anniversary of Nobel's death.